ENTREPRENEURIAL MINDSET

& THINKING SKILLS

MYLENE M. TURCO, MBA, CHRA
APRIL 2, 2024
OBJECTIVES:
• Distinguish between fixed and growing
mindsets;
• Explain the evidence in neuroscience about
how the growth mindset affects work and
school performance;
• Differentiate behavioral responses from fixed
and growth mindsets with regard to failures,
obstacles, challenges, criticism and effort; and
OBJECTIVES:
• Outline recommended strategies for
promoting growth mindset in the classroom
and workplace;
• Identify the critical thinking skills of
entrepreneur;
• Learn and evaluate the entrepreneurial
problems and opportunities.
ENTREPRENEURIAL MINDSET
A mindset is a pattern of thinking or
behavior of one or more individuals or
group of individuals (Argyris, 2004)

 Individuals acquires a mindset

through interaction with social,
economic, and cultural
environment.
 NEUROSCIENCE EVIDENCE OF
GROWTH MINDSET
• Scientific evidence backs up the
growth mindset idea, demonstrating
that the brain is pliable and expands
as more neurons connect.
Intelligence is positively associated to
brain volume, gray matter volume,
white matter volume, cortical
thickness, and neural efficiency.
NEUROSCIENCE EVIDENCE OF
GROWTH MINDSET
• The growth attitude is essential for
success in life.
• While brain size is not always
connected with intelligence, the
intricacy of cellular and molecular
connections is a significant factor. The
growth mentality is required for a
more conscious and intelligent
individual.
NEUROSCIENCE EVIDENCE OF
GROWTH MINDSET
• Studies show that growth mindsets
positively impact students’ performance
in education.
• Educators can improve achievement by
creating a growth mindset culture,
exposing students to neuroscience
evidence, promoting strategies, seeking
help, and changing interactions. A study
showed that students with a growing
mindset scored better in math over time.
NEUROSCIENCE EVIDENCE OF
GROWTH MINDSET
• Studies show that individuals with a
growing mindset tend to succeed in
advanced mathematics over time, while
those with a fixed mindset focus on
feeling better and analyzing previous
performance.
TYPES OF MINDSET
 THE MINDSET FOR ENTREPRENEUR

The growth mindset is crucial for

entrepreneurship, requiring
perseverance, learning from
failure, and adaptability.
Successful entrepreneurs use
cognitive strategies, identify
opportunities, and work in
uncertain environments.
 Passion and Entrepreneurship

Passion is a vital aspect of the entrepreneurial mindset,

motivating entrepreneurs to take risks, focus, and
achieve their goals. It can enhance mental activity,
foster creativity, and provide meaning to work.
However, it can also be dysfunctional, leading to blind
obsession and hindering business growth.
 Entrepreneurship as a Habit

Mindset is a crucial factor in success, and it can be

developed through developing new habits. Habits are
unconscious patterns of behavior that are learned
through a "habit loop" in the brain.
Rewards for good habits, such as the hygiene benefits
of brushing teeth, can encourage continued behavior.
Companies like toothpaste companies can instigate
habit loops by promoting these benefits.
 Critical
Thinking
Skills of
Entrepreneurs
 Critical Thinking Skills of Entrepreneur

Critical thinking – ability to apply

reasoning and logic to new or unfamiliar
ideas, opinions, and situations.

Open Minded Approach

Critical thinking fosters open-mindedness,
allowing individuals to explore all possible
solutions without assuming their
responses are always ideal or correct,
leading to significant discoveries.
 Critical Thinking Skills of Entrpreneur

Rational Considerations
Critical thinking involves rational
analysis, factual judgment, personal
goals, and removing prejudices to gain
a fresh, objective, and honest
decision-making process in problem-
solving.
.
 Critical Thinking Skills of Entrpreneur

Empathy
Critical thinking, a non-self-focused
approach, often involving empathy, is
beneficial in understanding ancient
civilizations and conflicts, enhancing
communication, teamwork, and
cooperation in various professional
fields.
 Critical Thinking Skills of Entrpreneur

How to Apply it
Critical thinking is a method of analyzing existing
knowledge and identifying unknowns, used in
science and personal life to gain objective views,
such as addressing prejudices and preconceived
notions.
Ex: A person struggling with a fear of heights
might rationally address the root cause to avoid
emotional responses and self-improvement.
 Critical Thinking Skills of Entrpreneur

Common Uses
Critical thinking is essential in various
situations, such as debate team
discussions, diets focusing on common
sense, and professional settings, where it
helps individuals work better with others
and complete tasks more effectively.
 Critical Thinking Skills of Entrpreneur

Teaching the Skills

US school systems teach critical thinking
from elementary to college, promoting
writing assignments, problem-solving,
and considering diverse perspectives to
learn from their surroundings.
 Develop Critical thinking Skills

Benefits in Professional and

everyday life

Critical thinking skills improve

precision in problem-solving and
project management by enabling
accurate identification of relevant
information, saving time and
enhancing precision in work.
 Develop Critical thinking Skills

Ancillary skills

Critical thinking involves the

development of a range of ancillary
skills such as:
 Observation
 Analysis
 Reasoning judgement
 Decision-making
 Persuasion
 Develop Critical thinking Skills

Realistic Self-appraisal

Advanced critical thinking skills are

essential for success in various
fields, enabling individuals to
confidently tackle complex
problems and projects, often
required in higher-level studies or
professional areas.
 Develop Critical thinking Skills

Emotional self-management

Critical thinking, despite appearing

dispassionate, can evoke
passionate responses due to the
need to weigh opposing
viewpoints, especially when
unexpected evidence contradicts
personal beliefs.
 Need for Critical Thinking

At the Level of Practical Decision

Making

Critical thinking is crucial for efficient

problem-solving, identifying and
discarding outdated assumptions,
anticipating consequences, and keeping
goals in sight.
 Need for Critical Thinking

At the Level of Meaningfulness

Critical thinking empowers
individuals to tackle broader life
issues, break free from limiting
habits, and explore new
opportunities, leading to more
fulfilling life paths.
 Need for Critical Thinking

At the Level of Concepts

Critical thinking involves critically
examining uncritical concepts like
love, freedom, justice, and
professions, recognizing their impact
on our lives and recognizing their
potential limitations.
 Evaluate Problems and
Opportunities
Identifying and selecting suitable
business opportunities is crucial for
determining market and profitability,
and entrepreneurs must navigate
various processes to find the right
project or product.
 Evaluate Problems and Opportunities
Entrepreneurs identify opportunities and set up their enterprises
based on factors such as:
a. Past experience
b. Government promotional schemes
c. High profitability
d. Market demand
e. Availability of inputs like raw materials
f. Expansion plans
g. Products reserved for small-scale units or specific locations.
Understanding these factors can help overcome dilemmas and
promote growth in the market.
 Sources of Ideas
Opportunity identification and selection are similar to marketing's new
product development process, generating ideas from internal and
external sources to help entrepreneurs choose the most promising
venture.

Various sources
1. Knowledge of potential customer needs,
2. Watching emerging trends in demands for certain products,
3.Scope for producing substitute product,
4. Going through certain professional magazines catering to specific
interests like electronics, computers, etc.,
 Sources of Ideas
5. Success stories of known entrepreneurs or friends or relatives, (vi)
6. Making visits to trade fairs and exhibitions displaying new
products and services,
7. Meeting with the Government agencies,
8. Ideas given by the knowledgeable persons,
9. Knowledge about the Government policy, concessions and
incentives, list of items reserved for exclusive manufacture in small-
scale sector,
10. A new product introduced by the competitor, and
11. One's market insights through observation.
 Implementing Entrepreneurial Ideas

Nature of Entrepreneurial Intentions

Intentionality is a psychological process that directs a
person's attention towards a specific goal or path. It
involves will, persistence, perseverance, and courage.
 Modern theorists like Miller, Galanter, and Pribram
consider intention as a variable in larger psychological
models, while cognitive theorists emphasize the
importance of expectation, attention, and belief in
behavioral outcomes.
 Some focus on processes that build or define intention.
The Contexts of Intentionality
 Nature of Entrepreneurial Intentions

• Intention is a psychological process involving will,

persistence, and courage, influencing behavior and
influencing cybernetic models (conceptual
frameworks or systems), cognitive theorists, and
some focus on defining intentions.
 Nature of Entrepreneurial Intentions
• Entrepreneurial intentions involve creating new
ventures or enhancing existing ones.
• They involve a locus of intention, including the
entrepreneur's and other stakeholders' intentions.
Personal and social contexts influence the formulation
of entrepreneurial intentions.
• Factors like prior experience, personality
characteristics, and abilities, along with social, political,
and economic factors, create the context for
entrepreneurship.
 Nature of Entrepreneurial Intentions

• Rational, analytic, and cause-and-effect-oriented

processes structure intention and action, while
intentionality includes freedom and creativity.
• Intuitive, holistic, and contextual thinking frames and
structures an entrepreneur's intention and action,
inspired by vision, hunch, untapped resources, and
enterprise potential.
 The Intention Process
• Entrepreneurship begins with an
entrepreneur's personal needs, values,
and beliefs, which guide behaviors such
as creating and maintaining temporal
tension, keeping strategic concentration,
and establishing a strategic stance.
 Sustaining Temporal Tension
• Western entrepreneurs often experience
temporal tension by linking the present
to the unreal future, leading to greater
uncertainty and tension.
• This connection is common sense, but
the psychological nature of this link in
new venture developments has not been
studied, although potential
measurements have been developed.
 Future Time Horizon
• Organizational transformation relies on
future time horizons, with roles becoming
time-specialized and feedback spans
varying.
• Research and development have longer
feedback spans, while functional groups
have shorter discretion time spans.
 Time Complexity
• Entrepreneurs are present-oriented
individuals who use visualization to guide
their organizations towards ideals and
situations.
• This combination, combined with
persistent efforts, can sustain a new
venture during its early vulnerable years,
as 30-50% of new ventures cease
operations within five years.
 Fast Dancing (rapid pace of innovation,
decision-making, or adaptation)

• Entrepreneurs use vigilance, updated

expertise, and intuitive anticipation to
shorten time lags between environmental
change information, decision-making,
and action-results, enabling them to
anticipate future outcomes.
 Sustaining Strategic Focus
• Entrepreneurs prioritize economic survival and
organizational growth, often using personal
wealth for financial stability.
• They are opportunistic, preferring instrumental
strategies, renting resources, and
subcontracting work.
• They may choose self-employment or start-
ups.
Entrepreneurial Focus
• Entrepreneurs struggle with strategic
focus but make clear values and
direction, follow through with resources,
and take personal responsibility for the
organization's outcome.
• They develop a psychological, social, and
strategic "zoom lens" to navigate
complexity.
 Implications
• The intentionality model in
entrepreneurship research differentiates
entrepreneurship from strategic
management by examining temporal
tension, strategic focus, and stance, and
contributes to leadership, organizational
development, and theory.
 Critical Thinking in Business
• Critical thinking is a vital skill in business,
enabling individuals to analyze situations and
find solutions.
• It is essential for effective communication
between management and employees,
especially in key positions like shift supervisors.
• It can help achieve goals or prevent undesired
actions.